August 15, 2000

Burleigh Heads, Australia -- Billabong International Ltd. debuted 36 percent above its initial public offer price last week, as it looks to expand in the $1.2-billion a year U.S. surfwear market.

Queensland state-based Billabong last Monday priced its shares in the IPO at A$2.30 for retail investors and A$2.60 for institutions. It sold 120.4-million shares, or about 60 percent, of the company, with about half going to retail investors. The stock rose A$0.83 to A$3.13, giving the company a market value of A$600-million ($353 million). It had reached a high of A$3.24.

Billabong expects surf wear sales to rise 47 percent to A$330.6-million in the year ending June 2001, a prospect supported by A$100-million in advanced orders. About half its sales are generated in the U.S.

The company has forecast earnings before interest and tax to grow 76 percent to A$66.7-million in fiscal 2001.

Billabong appointed Gary Pemberton, as non-executive chairman. Pemberton is chairman of Qantas Airways Ltd., TAB Ltd. and a director of Rio Tinto Ltd., the world�s second-biggest mining company.

�The main issue for us will be growing offshore,� said Pemberton, adding the company has recently introduced ladies wear into the U.S. market.

Billabong founder Gordon Merchant sold half his 50-percent stake in the company in the IPO.

Macquarie Corporate Finance, a division of Macquarie Bank Ltd., advised Billabong on its IPO.